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The KPI Playbook: How To Measure What Matters In E-Commerce Marketing
Manage episode 446449162 series 3031165
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🔥 In the last video, I dove into operational KPIs. Today, let’s talk Marketing KPIs and the Holy Grail of measuring your business’s health.
🎯 LTV (Lifetime Value) is one of the most critical numbers you need to know. Focus on your LTV at 30 days, then at 60 days, and keep track of it over a year! It should grow over time. If not, that’s a signal something’s off.
📊 Another crucial ratio: the first order value compared to your CAC (Cost of Acquisition). It needs to be cash positive. 🤑
Sure, there are loss leader strategies, but let’s keep things simple. If your first order value to CAC ratio is healthy, your business is healthy. 💪
And don’t forget to measure your 1-year LTV against your CAC as well.
If you’re successfully reselling to existing customers, you’re in a much stronger position!
✨ Lastly, my favorite: CPR (Customer Profitability Ratio). This includes:
- Profit margins 📈
- LTV as a percentage 🔢
- CAC 💵
When you put it all together, your CPR becomes a real-time pulse on your business’s health. If the number fluctuates, you can quickly see if the problem lies in your profit margins, LTV, or CAC—and take action. ✅
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